Hung parliament leaves IT industry uncertain

10.05.2010
The IT industry has been left with an uncertain future after the General Election resulted in Britain's first hung parliament in decades.

Conservative leader David Cameron insists Gordon Brown's Labour party has "lost its mandate to govern", but without a clear Tory majority, efforts to form a coalition with the Liberal Democrats continue.

Any coalition government, or a minority administration, could add not just to uncertainty affecting the country generally, but the IT industry in particular.

In the run up to the election all the parties insisted on major cuts in public sector spending with IT-driven efficiencies being counted on to protect service levels. Some existing projects are also likely to be axed -- including the expensive and controversial ID card scheme. Shares in outsourcing companies have fallen heavilly since the result was declared.

The Conservatives used the election to existing plans -- to freeze major new IT spending, and to make changes in government procurement by opening the market to smaller suppliers.

The Liberal Democrats for improved government IT procurement, and encouraged greater use of cloud computing and open-source software.